Company Snapshot : ICICI Bank

Jun 5th, 2017

About the company –

ICICI Bank (Industrial Credit and Investment Corporation of India) is an Indian multinational banking and financial services company with its registered office in Vadodara. ICICI Bank is India's largest private sector bank with total assets of Rs. 7,206.95 billion (US$ 109 billion) at March 31, 2016 and profit after tax Rs. 97.26 billion (US$ 1,468 million) for the year ended March 31, 2016. ICICI Bank currently has a network of 4,850 Branches and 13,660 ATM's across India as on 12th, May, 2017.

In 24th may, 2017 it was the second largest bank in India in terms of assets and market capitalization having Rs. 568,526.22 and Rs.178,751.81 crores respectively.

ICICI Bank was originally promoted as wholly owned subsidiary of ICICI Limited. But the shareholding of ICICI’s in ICICI Bank was reduced to 46 percent, through a public offering of shares in India in the year 1998, followed by an equity offering in the form of American Depositary Receipts on the NYSE in the year 2000.

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.

Operations– The bank has a presence in 19 countries including India. It has subsidiaries in the United Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Oman, Dubai International Finance Centre, China and South Africa; and representative offices in United Arab Emirates, Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has also established branches in Belgium and Germany.

History: In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002 and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.

1997: ITC Classic Finance. (It is incorporated in 1986, ITC Classic was a non-bank financial firm that engaged in hire, purchase, and leasing operations. At the time of being acquired, ITC Classic had 8 offices, 26 outlets, and 700 brokers.)

1998: Anagram(ENAGRAM) Finance. (Anagram had built up a network of some 50 branches in Gujarat, Rajasthan, and Maharashtra that were primarily engaged in retail financing of cars and trucks. It also had some 250,000 depositors.)

2001: Bank of Madura

2002: The Darjeeling and Shimla branches of Grindlays Bank

2005: Investitsionno-Kreditny Bank (IKB), a Russian bank

2007: Sangli Bank. (Sangli Bank was a private sector unlisted bank, founded in 1916, and 30% owned by the Bahte family. Its headquarters were in Sangli in Maharashtra, and it had 198 branches. It had 158 in Maharashtra and 31 in Karnataka, and others in Gujarat, Andhra Pradesh, Tamil Nadu, Goa, and Delhi. Its branches were relatively evenly split between metropolitan areas and rural or semi-urban areas.)

2010: The Bank of Rajasthan (BOR, It was acquired by the ICICI Bank in 2010 for ₹30 billion (US$450 million). RBI was critical of BOR's promoters not reducing their holdings in the company. BOR has since been merged with ICICI Bank.)

Key Financial Indicators: Last 5 Years (Rs. in billion, except per share data and percentages)

Particulars

2012

2013

2014

2015

2016

Total Deposits

2555.00

2926.14

3319.14

3615.63

4214.26

Total Advances

2537.28

2902.49

3387.03

3875.22

4352.64

Equity capital & reserves

604.05

667.06

732.13

804.29

897.36

Total assets

4890.69

5367.95

5946.42

6461.29

7206.95

Total capital adequacy ratio

18.5%

18.7%

17.7%

17.0%

16.6%

Net interest income

107.34

138.66

164.75

190.40

212.24

Net interest margin

2.73%

3.11%

3.33%

3.48%

3.49%

Profit after tax

64.65

83.25

98.10

111.75

97.26

Earnings per share (Basic)

11.22

14.44

17.00

19.32

16.75

Earnings per share (Diluted)

11.19

14.39

16.93

19.13

16.65

Return on average equity

11.1%

12.9%

13.7%

14.3%

11.3%

Dividend per share

3.30

4.00

4.60

5.00

5.00

Main Competitors:

HDFC Bank- The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. It has 84,325 employees on April, 2017. It has international presence in Bahrain, Hong Kong and Dubai. HDFC Bank is India’s largest private sector lender by assets and has 24% share in market. As of February 2016, it is also the largest bank in India by market capitalization of 403,190.89 Crore. HDFC Bank was the first corporate office and a full service branch at Sandoz House, Worli, Mumbai which was inaugurated by Manmohan Singh, by then Union Finance Minister. As of March 31, 2017, the Bank’s distribution network was at 4,715 branches and 12,260 ATMs across 2,597 cities / towns.

Kotak Mahindra- Kotak Mahindra Bank is an Indian private sector bank headquartered in Mumbai, Maharashtra, India. Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company, receives banking license from the Reserve Bank of India (RBI). With this, KMFL becomes the first non-banking finance company in India to be converted into a commercial bank - Kotak Mahindra Bank Ltd. Otherwise Kotak Mahindra Finance Ltd. had commenced its bill discounting business in the year 1985. Kotak Mahindra Bank has a network of 1,369 branches across 689 locations and 2,163 ATMs in the country (as of 31 March, 2017). In 2016, it was the third largest private bank in India by market capitalization of Rs. 172,577.99 crore.

Axis Bank- Axis Bank is the third largest private sector bank in India. The Bank has a large network of 2904 domestic branches (including extension counters) and 12,743 ATMs spread across the country as on 31st March 2016. The bank employs over 50,135 permanent employees and had a market capitalization of ₹105833 crores(as on March 31, 2016).

Axis Bank is one of the first new generation private sector banks to have begun operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The share holding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.

Awards:

ICICI Bank won the ‘Best Retail Bank in India’ award for the fourth consecutive year at the Asian Banker Excellence in Retail Financial Services International Awards 2017.

ICICI Bank’s Pockets has been selected as ‘App of the year’ for 2015-16 at the Financial Express Best Banks awards organized by The Financial Express.

ICICI Bank has been voted as the 'Top Borrower in Asia – India' for the fifth consecutive year and the 'Most Impressive Investment grade Financial Institution from Asia' in the online poll conducted by FinanceAsia magazine in 2016.

ICICI Bank won the 'Best Company to Work for' Award of Business Today magazine in the Banking, Financial Services and Insurance sector.

ICICI Bank was awarded the ‘Gold category’ recognition at the Energy And Environment Foundation Global Safety Award 2017. This is the highest award received by a bank in the Financial Sector – Banking/Non-Banking Finance Companies, for its constant effort towards encouraging safe work practices across operations.

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